AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO BENEFITS IN THE STATE EMPLOYEES' PENSION PLAN.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :

Section 1. Amend §5527(a), Chapter 55, Title 29, Delaware Code by deleting said subsection in its entirety and substituting in lieu thereof a new subsection "5527(a)" to read as follows:

“(a) The amount of the monthly service or disability pension payable to an employee or former employee shall be the sum of 2.0% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service prior to January 1, 1997, plus 1.85% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service after December 31, 1996. The amount payable to a participant who does not make the additional contribution provided in §5501(e) of this Title for years of credited service before 1977 shall be the sum of 2.0% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service between January 1, 1977 and December 31, 1996, plus 2.0% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service prior to January 1, 1977, provided that the maximum amount based on the service before 1977 is $1,000, plus 1.85% of his or her final average compensation multiplied by the number of years, taken to the nearest twelfth of a year, in his or her period of credited service after December 31, 1996.”

“(i)(1) Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective prior to July 1, 2001 and is payable on the effective date of this subsection shall be increased effective July 1, 2001 by 1.5%. These increases shall continue to be paid through June 30, 2002 and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with §5544 of this Chapter.

(2) Any monthly service, disability, and survivor pension based on a former service or disability pension that was effective prior to July 1, 2001 and is payable on the effective date of this subsection shall be increased effective July 1, 2001 by 0.5%. These increases shall continue to be paid through June 30, 2002 and every fiscal year thereafter provided that funds are appropriated by the General Assembly in accordance with §5544 of this Chapter.”

Section 3. The increases provided by Section 2 of this Act shall not apply to pensions awarded under §5527(d), Chapter 55, Title 29, Delaware Code.

Section 4. Amend §5316(a), Title 29, Delaware Code by deleting the phrase "the sum of $6,000 shall be paid from the Fund" as it appears therein and by inserting in lieu thereof the phrase "a benefit will be provided in the same manner as benefits provided under §5546".

Section 5. Amend §5546(a), Title 29 of the Delaware Code by striking the amount “$6,000” as it appears therein, and substituting in lieu thereof the amount “$7,000”.

“(k)(1) The State’s obligation to the State Employees’ Pension Plan, the State Judiciary Retirement Fund, and the New State Police Retirement Fund to implement the provisions of §5532(i)(1) of this Chapter shall be the payment required to amortize the unfunded accrued liability over five years from July 1, 2001, pursuant to §5548 of this Chapter.

(2) The State’s obligation to the State Employees’ Pension Plan to implement the provisions of §5532(i)(2) of this Chapter shall be treated as an actuarial loss during the next actuarial valuation process.

(3) The State’s obligation to the Special Pension Fund authorized by Volume 61, Chapter 455, Laws of Delaware, to implement the provisions of §5532(i) of this Chapter shall be treated as an actuarial loss during the next actuarial valuation process of the Special Pension Fund.”

Section 7. For the plan amendments provided in Sections 1 and 5 of this Act, any increase in the plan’s normal cost shall be included in the next valuation period. Any increase in the Plan’s unfunded actuarial accrued liability shall be treated as an actuarial loss during the next actuarial valuation process.